The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. OBI Pharma's quick ratio for the quarter that ended in Mar. 2024 was 18.71.
OBI Pharma has a quick ratio of 18.71. It generally indicates good short-term financial strength.
The historical rank and industry rank for OBI Pharma's Quick Ratio or its related term are showing as below:
ROCO:4174'
s Quick Ratio Range Over the Past 10 Years
Min: 8.2 Med: 35.17 Max: 169.7
Current: 18.71
During the past 13 years, OBI Pharma's highest Quick Ratio was 169.70. The lowest was 8.20. And the median was 35.17.
ROCO:4174's Quick Ratio is ranked better than 91.3% of 1541
companies
in the Biotechnology industry
Industry Median: 3.59
vs ROCO:4174: 18.71
OBI Pharma Quick Ratio Historical Data
The historical data trend for OBI Pharma's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of OBI Pharma's Quick Ratio
For the Biotechnology subindustry, OBI Pharma's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
OBI Pharma's Quick Ratio Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, OBI Pharma's Quick Ratio distribution charts can be found below:
* The bar in red indicates where OBI Pharma's Quick Ratio falls into.
OBI Pharma Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
OBI Pharma's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
OBI Pharma (ROCO:4174) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
OBI Pharma Quick Ratio Related Terms
Thank you for viewing the detailed overview of OBI Pharma's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
OBI Pharma Inc is part of the healthcare sector. The company and its subsidiaries are engaged in new drug research. Its focus is on the unmet medical need in challenging diseases throughout the world, such as cancer. OBI strives to improve health and the quality of life through cost-effective therapeutics. The Group has four reportable segments, which are the anti-cancer new drug segment, bispecific monoclonal antibody new drug segment, botulinum toxin new drug segment, and CDMO segment.
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